Review aims to improve spending of horticulture levies

Horticulture Australia Limited, the research and development corporation, is starting a review of its structure to see if levies can be streamlined and the money spent more effectively.

Growers pay levies for research work to solve problems from pests to packaging.

But there are 36 different levies on fruit, nut and vegetable industries, collected in over 100 different ways.

John Lloyd, chief executive of Horticulture Australia Limited (HAL), says the body invests $100 million a year in research for 43 industries.

Mr Lloyd says the number of sectors is far more diverse now than when HAL was set up 13 years ago.

"We grow every single horticultural crop in the world in Australia. Other than those that export significantly, we do so for a population not much bigger than Shanghai.

"So we have significant market failure all across our horticultural industries; in research and development, in critical mass.

"One of the consequences is we have 36 levies in over 100 different ways. This is an opportunity to rationalise that and make the levy money work harder."

Mr Lloyd says HAL has already responded to conflict of interest complaints about the citrus Industry Advisory Committee, which recommends research projects to be funded, by changing the makeup of that committee. He says it now has a more diverse membership, with fewer members from Citrus Australia, the peak lobby group.

The review into the Research and Development Corporation will have to report by May 2014.